Luxembourg Proposes 21-Month Grandfathering Period in a "Hard Brexit" Scenario

The Luxembourg government has proposed legislation (Draft Bill)1 which would allow UK financial service providers to continue rendering certain services in Luxembourg for a period of up to 21 months after the date when the UK withdraws from the EU (Exit Date). This would potentially allow UK-based AIFMs or UCITS management companies to continue to directly manage their existing Luxembourg funds following a "hard Brexit" during the transitional period.